Rivian Options Volume Climbs as Volkswagen Boosts Investment Plan in EV Maker

Volkswagen increased its planned investment in Rivian by $800 million to $5.8 billion as the two companies form a new joint venture to create next-generation electrical architecture and vertically-integrated software for electric vehicles.

Rivian shares climbed to $12.30 as the announcement eased concerns that the deal for the joint venture may not close. That brightened the outlook for the electric vehicle maker that saw its revenue shrink 35% in the third quarter ended Sept. 30, the biggest decline since its initial public offering in late 2021. The electric vehicle maker has been burning cash in all its history as a public company.

More than three-quarters of the volume so far are in call options, the most popular of which is the contract that gives the holders the right to buy Rivian stock at $13 in two days. The price of those calls climbed 1,800% as volume climbed to 47,310, almost six times the open interest.

After gapping up Wednesday to as high as $13.10, the share price pierced through the upper line of the Bollinger band, a sign to some who study charts the trend could be turning bearish.

Nine other technical indicators tracked by moomoo are flashing early warning signals that the stock rally could run out of steam.

Amid the rally, fund outflows from the stock have outpaced outflows by $26.5 million, capital trend data tracked by moomoo showed. That trims the first monthly inflow into Rivian since May.

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